Investors Continue to Put Money with J.P. Morgan

While the bond-fund industry saw record net outflows last month amid the yield spike at the long end of the curve J.P. Morgan customers didn’t stop socking away money.

In its second quarter, the bank’s asset-management business saw $25 billion of net long-term inflows as the segment’s profit jumped 28% amid 15% revenue growth.

Long-term net inflows have totaled $84 billion the past year and J.P. Morgan’s clients’ asset-management assets stood at $2.2 trillion at quarter-end, falling slightly in the second quarter amid the slump in bonds and other asset classes like gold while stocks paused.

Asset management, run by Wall Street star Mary Erdoes, has long been a quiet money-making machine for J.P. Morgan, though it’s one of the smaller of the five segments.

By asset types, client balances in fixed-income were up 5% from the prior year but down 2% from the prior quarter. Equity assets, meanwhile, leapt 26% from last year and ticked up 1% from the prior quarter.

The gains in assets under management were driven largely by retail clients and the high and ultra-high-net worth private banking clients.